# In the matter of Sri Karthikeyan Spinning and Weaving Mills Pvt. Ltd.

> NCLT judgment dated 2023-06-26. Citation: TCN-2023-NCLT-02801. The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 26 Jun 2023
- **Citation:** TCN-2023-NCLT-02801
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-karthikeyan-spinning-and-weaving-mills-pvt-ltd-adda073a

## Summary

### Background

The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking withdrawal of a company petition against the Corporate Debtor. The Tribunal had previously passed an order on June 9, 2023, commencing the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The Corporate Debtor has made a payment of Rs. 1,74,92,478, which was acknowledged by the Operational Creditor.

## Facts

An application was filed under Section 12A of the IBC, 2016, seeking withdrawal of a company petition against the Corporate Debtor. The NCLT had initiated CIRP against the Corporate Debtor on 2023-06-09. The Corporate Debtor made a payment of Rs. 1,74,92,478 to the Operational Creditor, which was acknowledged via receipt dated 2023-06-10. The Operational Creditor received full and final settlement. The IRP confirmed receipt of Form FA and stated that no public announcement was made. The relevance of these facts is that they demonstrate compliance with the requirements for withdrawal under Section 12A of the IBC, specifically the settlement of dues with the operational creditor.

## Issues and analysis

### Issue 1: Whether the withdrawal application under Section 12A of the IBC should be allowed given the full …

**Ratio:** Section 12A of the IBC allows for the withdrawal of an application admitted under Section

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**Reasoning:** The court reasoned that the Operational Creditor had received full and final settlement

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**Interpretation:** Section 12A is interpreted to provide a mechanism for settling disputes and

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**Application:** In this case, the ratio and reasoning were applied to the specific facts where

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## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** R. Raghav…
- **Respondents:** M/s Sri Karthikeya…

## Timeline

- **2023-06-09 — CIRP Comm…**: The Tribunal passed an order commencing…
- **2023-06-10 — Payment Ackno…**: The Operational Creditor acknowledged the payment of Rs. 1,74,92,478/- made by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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